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Well, then how do you suggest that this seller get proof of "pre-qualified buyers" only viewing the home?
Mikey, the buyers agent should make sure the buyers they are working with are actually qualified to buy in a certain price range before ever wasting any time taking them out to see property in the first place.
If a buyers agent can assure the listing agent that his/her buyers are indeed "real" buyers that should be sufficient for a seller.
It is a shame isn't it. With all the advertising, homeowner seminars, first time buyer seminars, and on and on ... that the local Boards of Realtors put on for the public, the misinformation and unfortunate experiences that some buyers and sellers have with the real estate profession is daunting. Not to mention, all the information posted on this very website and this forum; the availability of a wide variety of educational materials on the internet; literature in print, etc. you would think many people would take the time to digest and learn, not only what it takes to be a Realtor, but what Realtors expect of their clients. There are bad apples in every profession, and we are constantly trying to educate the public that painting everyone with a broad brush is not the way to learn.
On the upside, to all of the successful agents out there who are entitled to be very proud of their accomplishments resulting from years of their best efforts .... bravo! Efforts above and beyond and behind the scenes, so many who go the extra mile never looking for recognition. The proof of rewards is in their longevity, client loyalty, reputation in the community, personal referrals and ongoing success.
It is a shame isn't it. With all the advertising, homeowner seminars, first time buyer seminars, and on and on ... that the local Boards of Realtors put on for the public, the misinformation and unfortunate experiences that some buyers and sellers have with the real estate profession is daunting. Not to mention, all the information posted on this very website and this forum; the availability of a wide variety of educational materials on the internet; literature in print, etc. you would think many people would take the time to digest and learn, not only what it takes to be a Realtor, but what Realtors expect of their clients. There are bad apples in every profession, and we are constantly trying to educate the public that painting everyone with a broad brush is not the way to learn.
On the upside, to all of the successful agents out there who are entitled to be very proud of their accomplishments resulting from years of their best efforts .... bravo! Efforts above and beyond and behind the scenes, so many who go the extra mile never looking for recognition. The proof of rewards is in their longevity, client loyalty, reputation in the community, personal referrals and ongoing success.
I heard recently that in the future becoming a realtor is going to involve a obtaining a college degree. There's more to it than many people realize
Have to reiterate here on this approval/pre-qual discussion. I have NEVER heard of such a thing as a seller wanting to see that information prior to allowing a showing. There may be some odd local customs, but that is counter productive to selling a home.
The SHOWING AGENT/BUYERS AGENT is the only one who needs to know that the buyer is qualified to buy a home in a certain price range with a certain mortgage qualification, or cash/proof of funds.
If you are in an area of the country where there is no "centralized showing service", (where the buyer's agent calls for an appt. to show the home at a certain time, and normally the sellers get out of the house before a showing) .... then maybe they have to call the listing agent directly for an appt. At that time the listing agent could say, "do you have a pre approval/pre qual letter", "are they qualified?" etc. That is all that needs to be known.
Any Realtor worth his salt is not going to open his client's house for the general public to waltz through at their leisure if they are not qualified or seriously looking for a house in that price range.
Let me say again, the general public has a lot of mis-information, mostly via hearsay, about the responsibilities of Realtors. Rumor and innuendo abound. If you don't trust a Realtor to list or show your property .... try to do it on your own. Or, even better; take some courses, get your license, pay all the fees ... and get back to us on what the real deal is.
Excellent post, absolutely agree, and I especially love that last part!
Let me say again, the general public has a lot of mis-information, mostly via hearsay, about the responsibilities of Realtors. Rumor and innuendo abound. If you don't trust a Realtor to list or show your property .... try to do it on your own. Or, even better; take some courses, get your license, pay all the fees ... and get back to us on what the real deal is.
Even if your average Joe got a license to do their personal transactions, they still wouldn't understand what it would be like to have earn a living selling RE. It may seem like a minor difference, but I think you'd agree that it is a huge one.
Mikey, the buyers agent should make sure the buyers they are working with are actually qualified to buy in a certain price range before ever wasting any time taking them out to see property in the first place.
If a buyers agent can assure the listing agent that his/her buyers are indeed "real" buyers that should be sufficient for a seller.
I agree. But to be honest, the typical meetings with buyer's agents I've had go something like this...
REA - "What's your budget?"
me - "I'm hoping to keep it under 12345."
REA - "What are your requirements?"
me - "Schools, 4/3, office, walls, floors... a ceiling would be nice."
REA - "Here's some documents for you to review."
me - "Thanks - I'm available this week from Day during Times."
.... emails start, confirm availability, meet at their office
REA - "OK, the first property we're seeing today is a little over your budget, but...........
There's more to it of course and some would prefer you sign a BA immediately (which I won't do until I'm comfortable working with them), but I'm not leaving out the part where I give any technicals on my finances to the REA other then my budget.
Mikey, the buyers agent should make sure the buyers they are working with are actually qualified to buy in a certain price range before ever wasting any time taking them out to see property in the first place.
If a buyers agent can assure the listing agent that his/her buyers are indeed "real" buyers that should be sufficient for a seller.
So am I to understand that all the agents posting here sit down with their prospective buyers, go over all their finances, go over all their bills, go over their monthly revolving debt, discuss their employment history and stability, check their FICO scores, discuss retirement plans and future goals, discuss lifestyle choices, and then decide together what price range they will be looking at based on their overall fiscal health?
Or do they take some random piece of paper as 'good enough' and trot out to look at houses?
Because if your argument is that you don't want to waste your time, it seems like you'd go to the trouble of doing all the above and really pry to get the real truth.
Me to Joe the Lender: "They want me to show them homes in the $450,000--$500,000 range. Legit, or am I wasting my time?"
Joe the Lender to Me: Various possibilities... "Try to stay below $460,000--$465,000." Or, "I can't confirm any income." Or, "You will be Okay."
I don't need to hear that they have no debt, make combined $225,000/year, and Dad is kicking in 50 grand. Immaterial details to me, as long as they have made a lending partner that will get them organized for closing.
I don't want to know their top end or details, unless they are asking to spend my time seeing stuff that significantly exceeds their realistic top end.
Seems fair to me.
So am I to understand that all the agents posting here sit down with their prospective buyers, go over all their finances, go over all their bills, go over their monthly revolving debt, discuss their employment history and stability, check their FICO scores, discuss retirement plans and future goals, discuss lifestyle choices, and then decide together what price range they will be looking at based on their overall fiscal health?
No, that's the job of the lender, but you're honing in on the process now.
The lender provides the buyer with the pre-approval letter (note: the buyer can request a few different letters at different price points if they so choose) by going with them over everything you mentioned - verifying funds, employment, etc.
Then the buyer provides the realtor with the pre-approval of their choice given to them by the lender.
Wallah!
And to answer your question, yes, that's how I work with buyers. It's good for them (I've already talked about why), and it's good for me.
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